Starting October 1, 2023, Ohio’s Operating Budget introduced new sales tax exemptions related to children and childcare-related expenses. Let’s dive into the details.
Section R.C. 5739.02(B)(60) exempts children’s diapers from sales tax and includes new definitions of both children’s and adult diapers. A diaper is now considered an absorbent garment worn by humans who are incapable of or have difficulty controlling their bladder or bowel movements. Diapers marketed to be worn by children are considered “children’s diapers” and those marketed to be worn by adults are considered “adult diapers”.
Therapeutic and Preventative Creams and Wipes
The new law also provides an exemption for sales of therapeutic or preventative creams and wipes primarily intended for children’s skin. It’s important to note that this exemption applies only to topical treatments marketed for kids. So, your standard grooming and hygiene products won’t fall under this category, even if they’re over-the-counter drugs.
Child Restraints and Booster Seats
Sales of child restraint devices or booster seats that meet the National Highway Safety Administration standard for child restraint systems under 49 C.F.R. 571.213 are now exempt from sales tax. Safety first!
Sales of cribs intended for children’s sleeping accommodations are now exempt from sales tax. To qualify for the exemption, these cribs must also meet federal safety regulation standards 16 C.F.R. 1219 or 16 C.F.R. 1220.
Transporting your child just got a tax break too. Sales of strollers meant for kids from infancy to about thirty-six months of age that meet the United States Consumer Product Safety Commission safety standard for carriages and strollers under 16 C.F.R. 1220 are now exempt. This includes various types of strollers, such as folding or collapsible strollers, convertible car seats/strollers, and jogging strollers.
Let’s address some common questions about Ohio’s Sales tax exemption for baby products:
When does the new exemption start?
The exemption only applies to sales made on or after October 1, 2023.
Is there a spending limit?
No, there’s no limit on how much you can spend to qualify for the exemption.
What if I’m charged sales tax?
If you think you were wrongly charged sales tax on an exempt product, you can apply for a sales tax refund using the Sales/Use Tax Application for Refund (ST AR) form. Be sure to include proof of payment.
Do online purchases from companies located outside Ohio count?
Absolutely! The exemption applies to any purchases made while living in or located in Ohio, whether they’re online or in-store. If you believe you’ve been wrongly charged sales tax on an online purchase of an exempt product, provide proof of purchase and apply for a refund using the Sales/Use Tax Application for Refund (ST AR) form.
For more information on Ohio sales and use tax laws, visit the Ohio Department of Taxation’s FAQ section.
So, there you have it, folks. Ohio’s got your back when it comes to taking care of your little ones. Happy shopping and enjoy those tax exemptions!
Want to learn how we can take sales tax off your plate? Talk to our team of TaxGeeks today.